TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 213
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....celled. 3. That the AO had accepted the returned income of the assessee after making due and specific enquiries and finding a reasonable view on the issues, hence, the order of assessment dated 21.05.2019 cannot be regarded as erroneous in as much as prejudicial to the interest of revenue merely because ld Pr. CIT held a different opinion on the scope of such enquiries 4. That ld. Pr. CIT also failed to appreciate that, u/s 263 of the Act, an order of assessment cannot be set-aside to AO to simply to make further enquiries and thereafter pass fresh order of assessment. Therefore, and as such, impugned order and directions issued u/s 263 for de-novo assessment are untenable, contrary to law and unsustainable. 5. That the impugned order passed is vague, non-speaking, unreasoned and without dealing with the submissions of the appellant and judicial pronouncement relied upon by the assessee and hence, the impugned order is bad in law and liable to be quashed. 2. The brief facts of the case are that the assessee is an individual and derives income from business and profession from his proprietorship concern, namely M/s Mansinghka Jewellers, which is engaged in the trading of silv....
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....Assessing Officer; that thus, proper enquiry has been made by the Assessing Officer; that therefore, it was not a case of non-enquiry, or negligence or non-application of mind by the Assessing Officer; and that the Assessing Officer had called for various details and the assessee has supplied the same during the course of hearing and after being satisfied with this information and the facts, the Assessing Officer had accepted the returned income of the assessee. 5. The ld. Counsel for the assessee further submitted that besides, the Assessing Officer has passed the order acting in accordance with law, therefore, the same cannot be branded as erroneous; that again, any and every erroneous order cannot be the subject matter of revision, because the second requirement also must be fulfilled, i.e., it is prejudicial to the interests of the Revenue; that the words 'prejudicial to the interest of the Revenue', mean that every loss for the Revenue as a consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interest of the revenue; that for example, when an Assessing Officer has adopted one of the courses permissible in law and it has resulted int....
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....eriod of Diwali and all the staff are engaged, therefore, the assessee did not get time to deposit the cash balance in the bank. 9. Apropos the Pr. CIT's observation that the Assessing Officer has not verified the sales trend from VAT returns and from the books of account of the preceding year, the ld. Counsel for the assessee submitted that first of all, the assessee had submitted financial statements of the year under consideration, which were having the figures of sales of preceding years also (APB:268-281); that thus, it cannot be said that the Assessing Officer has not verified the figures of sales from preceding years; that merely because from a perfectionist point of view, it is felt that some more enquiries and verifications could have been made by Assessing Officer while making assessment, the assessment order cannot be declared to be erroneous and prejudicial to the interests of the Revenue; and that since the Assessing Officer has verified the sales from cash books, sales register, stock register and other necessary ledgers, figures of sales of year, quantitative details maintained and furnished in 3CD report etc., therefore, it cannot be said that the Assessing Officer....
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....to be cancelled and to be framed denovo as per law after giving reasonable opportunity to the assessee, which has rightly been ordered by the ld. CIT. 14. We have heard the parties and have perused the material placed on record. The assessee filed submissions dated 19.2.2020 (APB:112-225) and reply dated 20.2.2019 (APB:226- 255) before the Assessing Officer. 15. As seen from APB:111, the reason for selection of the case of the assessee under scrutiny was abnormal increase in cash deposit during the demonetization period, as compared to the pre-demonetization period. The rationale given was that there was abnormal increase in cash deposit during the demonetization period as compared to the average rate of cash deposit during the pre-demonetization period. 16. In the reply dated 19.2.2019, the assessee, inter alia, contended that the assessee had made cash sale. The details (APB:113), as maintained by the assessee firm, were furnished before us. These details were filed at pages 93 to 112 of the reply before the Assessing Officer. 17. In the assessment proceedings, the assessee had submitted due reply to the questionnaire raised. The cash deposits were substantiated with the asse....
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.... it is the satisfaction of the Assessing Officer who makes enquiry which should be the touch stone to test the validity of the assessment order passed by the Assessing Officer; and that the Commissioner cannot substitute his subjective view in place of the findings of the Assessing Officer. 23. Rather, in the case at hand, as seen hereinabove, the Assessing Officer conducted enquiry and passed the assessment order after considering the reply filed on behalf of the assessee. 24. Regarding the observations of the ld. CIT, doubting the cash sales made by the assessee (amounting to Rs. 57 lakhs) for the period from 21.10.2016 to 5.11.2016, it has not been disputed, when contended that the Diwali festival for the year under consideration fell on 30.10.2016 and the Diwali season ended with Chhath Puja on 6/7.11.2016. It has also not been challenged that the sale of silver is higher during this period. Thus, the doubt entertained by the ld. CIT is based on merely surmises and conjectures. It again does not stand disputed that a month-wise chart of quantity and value of stock was duly submitted by the assessee before the Assessing Officer in the assessment proceedings. This is an annexur....